Retracting Storage Capacity
Leading commodities trading establishment, Gunvor, has plans in the pipeline to relinquish a portion of its fuel oil storage capacity in Singapore. According to unofficial sources quoted by Reuters, the firm is gearing up to forfeit about 600,000 cubic meters of its fuel oil storage at the highly acclaimed Oiltanking Seraya terminal.
New Custodians at the Helm
In a strategic move, Sinopec Fuel Oil Singapore is poised to assume control of the soon-to-be-vacant storage facilities gradually. Sinopec stands as a trusted entity in the fuel industry and its appropriation of Gunvor’s earlier fuel oil capacities translates into their increased foothold in the market.
The Future of Gunvor’s Facilities
However, Gunvor’s fuel storage capacities aren’t limited to the Seraya terminal. The company also retains a significant capacity at the renowned Jurong Port Universal Terminal. Yet, uncertainties loom over its future. The lease pertaining to this particular capacity is nearing its expiration, with the renewal due by the close of this year, as per the report.
Sinopec Secures Licence
On a related note, Sinopec attained its license to supply bunkers in Singapore in the early half of 2022, specifically in June. This accomplishment in licensing amplified their prominence in Singapore’s fuel market, giving them a significant advantage in this competitive domain.
The upcoming shift in control of fuel storage facilities is undeniably a remarkable development in Singapore’s fuel industry. The focus now falls on the renewal decision Gunvor makes for its storage capacity lease at the Jurong Port Universal Terminal. No matter the result, one thing is for certain: the trading landscape is set for significant changes, proving that in the world of commodity trading, nothing is static.
